Abstract: A social network loyalty-reward system and method provides an application downloadable to a mobile device. Using the system and a customer's mobile device, the application permits participation in a vendor's loyalty program, the participation being triggered by proximity of the user to a specific location or vendor's site. When the user's presence near a point of sale (POS) or other location is detected, rewards are uploaded to the user's account. Moreover, rewards are distributed to individuals in a contact list or social network of the user's mobile device. This obviates the requirement for a customer to produce a physical card or enter an “ID” number to receive loyalty points. Distribution of loyalty points to the user's social network, as defined by the user's contact list, engenders loyalty to the retailer on the part of the user and his/her social contacts.